The text shows that income elasticity for books is 1.44 . This means that
a. books are income inelastic
b. books are price inelastic
c. there's a 144 percent increase in book sales when income rises 10 percent
d. there's a 44 percent increase in book sales when income rises 10 percent
e. there's a 1.44 percent increase in book sales when income rises 1 percent
E
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If people never withdrew money, how much money could the banking system create given a new amount of deposits, assuming that excess reserves were zero?
A) the amount of new deposits multiplied by the money multiplier B) as much as the new deposits C) zero D) the amount of new deposits multiplied by the reserve ratio
If you want to have $50,000 in 5 years, how much would you need to put in your savings account now if the savings account pays 3 percent interest?
What will be an ideal response?
A U.S. trade policy that restricts the sale of foreign goods in the U.S. market will
a. reduce the demand for U.S. export goods since foreigners will be less able to buy our goods if they cannot sell to us. b. benefit producers in industries that export goods. c. increase the nation's income since it protects domestic jobs. d. enhance economic efficiency by allocating more resources to the areas of their greatest comparative advantage.
Country A can produce both wheat and oranges using fewer resources than country B. Which of the following statements is true?
A. Country A has a comparative advantage in producing both goods. B. Country A has an absolute advantage in producing both goods. C. Country B has no comparative advantage. D. Country B must have an absolute advantage in producing one of the goods.